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Indorama Ventures completes purchase of Brazilian polyester fibre producer

Thailand’s Indorama Ventures, a global chemicals producer, on Monday announced the completion of its acquisition of M&G Fibras Brasil.

The Brazilian firm’s Cabo de Santo Agostinho plant manufactures and supplies polyester staple fibre, with a total polymerisation capacity of 75,000 tonnes per annum.
Indorama Ventures had previously announced its agreement to acquire M&G Fibras Brasil on November 2 last year, following the acquisition of Brazil’s largest PET (polyethylene terephthalate) asset announced in the first quarter of the year. 
The acquisition marks the Thai company’s debut into the fibre business in Brazil and is a strategic step forward for the business. 
It provides Indorama Ventures a unique opportunity to add capacity in fibres and establish its presence in South America’s largest economy, the firm said in a statement.
The acquisition will significantly boost Indorama Ventures’s presence in the fast-growing market in Brazil, where domestic demand is expected to grow in response to a recent recovery in consumption. 
In addition, Indorama Ventures is well-positioned to expand more into non-woven applications which are growing strongly in Brazil, supported by the presence of global brands. 
The acquisition will also strengthen the company’s “Home and Lifestyle” portfolio, it said.
Indorama Ventures has an excellent track record of successfully integrating acquired business into its operations, and driving synergistic growth. 
It anticipates lowering its fixed costs by creating synergies and operating efficiencies, driven by supply-chain optimisation with the delivery of purified terephthalic acid from a nearby location, and consolidation of its commercial offices by joining with the firm’s PET site in Brazil. 
Further synergies will be realised through logistic advantages due to established free-trade agreements with other Latin American countries, the statement added.

Published : February 25, 2019

By : The Nation